AUSTIN, Texas — Texas’ unemployment rate fell slightly to 4.4% in August as employers added 5,600 nonfarm jobs, according to the Texas Workforce Commission and U.S. Bureau of Labor Statistics.
The August unemployment rate dropped 0.1 percentage point from July but remained 0.2 percentage point higher than the rate recorded in August 2025. Texas’ rate also stood 0.3 percentage point above the national unemployment rate.
Texas added about 14.5 million nonfarm jobs in August, bringing its total job gains for the year to 159,400, according to the Texas Workforce Commission.
The state recorded a 1.1% annual job growth rate, which exceeded the national rate by 0.7 percentage point.
“The addition of more than 159,000 jobs over the year reinforces Texas’ status as a premier destination for employers and a source of ample opportunity for Texas workers,” TWC Chairman Joe Esparza said.
Leisure and hospitality lead job gains
Leisure and hospitality posted the largest month-to-month employment increase in August, adding 4,900 jobs.
Professional and business services added 4,500 jobs, while manufacturing employment increased by 2,200 positions.
Federal statistics also ranked Texas as the state with the largest job gains during the period.
Midland posts lowest unemployment rate
The Midland area recorded the state’s lowest unemployment rate at 3.3%, according to TWC.
San Angelo followed at 3.6%, while Abilene and Amarillo each recorded a 3.7% unemployment rate.
Texas’ August employment figures come as the state continues to add jobs despite an unemployment rate that remains above its level from a year earlier.